After many announcements and press releases regarding the upcoming acquisition of Playtech’s financial services business, Finalto, the company decided to postpone its shareholder vote, which was going to be held on 15 July.
Playtech announced today that it is delaying its general meeting for shareholder approval of Finalto’s acquisition by the consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Group until 29 July.
The decision follows recent offer made by Playtech shareholder Gopher Investments for $250 million. Gopher, consulted by Hong Kong- based TT Bond Partners, stated that the consortium’s offer was below the real value of the business and asked Playtech’s shareholders to vote against it.
In May Playtech and the consortium signed a binding deal for the sale of Finalto for $210 million after a lengthy and complicated approval process.
Playtech said in its latest statement:
Playtech and the Consortium are bound by the restrictions agreed as part of the SPA, which includes not engaging in negotiations with any third party regarding a potential transaction involving the sale of Finalto, as is customary for transactions of this nature. For the avoidance of doubt, the adjournment of the General Meeting does not change these restrictions.
In response to the recent developments, the constortium expressed suspicions about Gopher based on the little information available on the fund and its recent interest in Finalto given that it’s sale was public for and going for months.
The consortium responded:
The Consortium recognises Playtech’s fiduciary duty to its shareholders and is pleased that Playtech and its shareholders will now have the opportunity to scrutinise the recent indicative non-binding interest for Finalto from Gopher Investments.
Hours before the general meeting was postponed, Gopher improved their offer for the acquisition of Finalto offering a break fee of $10 million.
